Remaking GM

Praise, caution greet deal

GM, Delphi workers weigh incentives to retire, leave

Nick Bunkley, Sharon Terlep and Gary Heinlein / The Detroit News

FLINT -- News of hefty buyout offers for thousands of workers at Delphi Corp. and General Motors Corp. generated a rare mixture of relief and cautious optimism in Michigan factories on Wednesday.

In one Flint plant, employees cheered and danced on the factory floor. In Lansing, a union leader offered uncommon praise for GM. And, in homes throughout the state, workers who've spent most of their lives on a factory floor made plans for retirements that just got richer.

"I'll fly out of here in a heartbeat," said Demetrius Dumont, who makes spark plugs at Delphi in Flint. With 30 years of experience, Dumont should be eligible for a $35,000 lump-sum payment. "I was ready to go even without the money," he said.

The main gripes about the latest downsizing plan at GM and Delphi came from younger workers who will be largely left out of payoff deals designed to save their sinking employers, and from some who'd expected more.

But mainly people welcomed news that more than 100,000 hourly GM workers and 13,000 hourly Delphi employees are eligible for buyouts and retirement incentives that range from $35,000 to $140,000, depending on where they work and their years of service.

"I've never seen a package like this come down," said Art Baker, shop committee chairman for UAW Local 652 in Lansing. "GM never has offered opportunities like these. I'm probably the only guy who's not going to take it."

The impact of the buyouts is likely to be felt quickly in factory towns throughout the country, workers and union leaders said. Laid-off workers could benefit as well, they said, as the departure of longtime employees creates openings.

At Delphi, up to 5,000 workers will be eligible to return to GM, Delphi's former parent company, while 13,000 U.S. hourly workers will be eligible for a lump-sum payment of up to $35,000 to retire.

At Delphi's sprawling Flint East plant on Wednesday, employees were ecstatic that the deal lets them retire with full benefits. Some had dental work done and their vision tested in the past few months in case their health insurance was cut off.

Gail Schloegl, who makes circuit boards and has 28 1/2 years at GM and Delphi, said she and others spent most of the morning shift studying handouts describing the buyouts as their bosses prodded them to keep working. Many requested today off to celebrate.

"Everybody that I talked to today is taking it. They were dancing and singing and all happy," Schloegl said Wednesday. "Today was a whole different day at Delphi."

Schloegl hopes to take the buyout and retire to Florida. Her mother cried out of happiness when Schloegl called with the news Wednesday.

"There's no future there anymore," she said, "and it's good for (Delphi) because then they can make money, and I really want them to make money."

Pontiac's Roger Hardenburgh was already on track to retire in August after 30 years at GM. The only thing different now, he said, is that he'll have about $22,000, he figures, after taxes.

"That's a down payment on an airplane," said Hardenburgh, 51, who has a pilot's license. As he sat at Ventura Lounge across the street from GM's Pontiac truck factory, his friends joked that in light of the buyout, he owes them free rides to the Caribbean.

"There were a lot of guys waiting around for this," he said. "It's a fair deal, no doubt about it."

Rumors of a buyout deal had been churning for months. The details that emerged Wednesday pleased many who feared they would be left with no perks for leaving early. Others, though, were disappointed they won't get more. Some younger workers say they have little to gain.

Delphi pipefitter Thomas Wilson said it doesn't appear that his 15 years of experience is enough to get a good deal.

He figures keeping his job will keep him in better shape financially than accepting a lump-sum payment to leave now.

Kelly Saunders, another Delphi worker, will jump at the offer, but not because he wants to leave. Saunders says he's anxious to get out before the company forces drastic pay cuts on its workers.

"I don't think that I'm really ready to retire, but I'll do what I have to," said Saunders, whose 28 1/2 years on the job qualifies him for a buyout worth about $50,000. "If they take me down to $12.50, that's going to hurt."

In Lansing, veteran GM worker Fred Charles predicted the buyouts will spur a lot of departures there. The chance for workers, on average, to be paid $2,900 a month to stay home and do what they want until they reach the 30-year mark will be attractive to many, he said.

At age 55 and past 30 years already, he's considering it. His longtime goal had been to leave when he reached 58.

"Not too many people have retired in the last couple of years, basically because there have been rumors afloat," Charles said. "You know, you wait and take the best deal."

You can reach Nick Bunkley at (313) 223-2293 or nbunkley@detnews.com.